Texas 2015 - 84th Regular

Texas House Bill HB3525 Compare Versions

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1	1	84R11798 ATP-F
2	2	By: Rodriguez of Travis H.B. No. 3525
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to creating the Texas Quality Research Leadership
8	8	Authority to help Texas small businesses rapidly scale in
9	9	potentially leading edge technologies and abolishing the Texas
10	10	emerging technology fund.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle F, Title 4, Government Code, is amended
13	13	by adding Chapter 482 to read as follows:
14	14	CHAPTER 482. TEXAS QUALITY RESEARCH LEADERSHIP AUTHORITY
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 482.001. PURPOSES. (a) The Texas Quality Research
17	17	Leadership Authority is established under this chapter to help
18	18	Texas small businesses rapidly scale in potentially leading edge
19	19	technologies by:
20	20	(1) increasing higher education applied technology
21	21	research capabilities;
22	22	(2) expediting innovation and commercialization of
23	23	research; and
24	24	(3) significantly increasing this state's share of
25	25	United States venture capital.
26	26	Sec. 482.002. DEFINITIONS. In this chapter:
27	27	(1) "Authority" means the Texas Quality Research
28	28	Leadership Authority.
29	29	(2) "Fund" means the fund for the Texas Quality
30	30	Research Leadership Authority.
31	31	(3) "Oversight committee" means the oversight
32	32	committee of the Texas Quality Research Leadership Authority.
33	33	(4) "Stake" means a financial stake in an entity or
34	34	project that receives funding through the authority.
35	35	Sec. 482.003. CONSTRUCTION OF LAW REGARDING AUTHORITY OF
36	36	STATE AUDITOR. Nothing in this chapter limits the authority of the
37	37	state auditor under Chapter 321 or other law.
38	38	SUBCHAPTER B. ADMINISTRATION
39	39	Sec. 482.051. OVERSIGHT COMMITTEE. (a) The oversight
40	40	committee is composed of the following nine members:
41	41	(1) three members appointed by the governor;
42	42	(2) three members appointed by the lieutenant
43	43	governor; and
44	44	(3) three members appointed by the speaker of the
45	45	house of representatives.
46	46	(b) Oversight committee members serve at the pleasure of the
47	47	appointing office for staggered six-year terms, with the terms of
48	48	three members expiring on January 31 of each odd-numbered year.
49	49	(c) In making appointments to the oversight committee, the
50	50	following persons may nominate one or more individuals who are
51	51	industry leaders in Texas or who are nationally recognized leaders
52	52	from Texas public or private institutions of higher education for
53	53	appointment to the committee:
54	54	(1) a president of a public or private institution of
55	55	higher education in this state;
56	56	(2) a representative of the governor's office involved
57	57	with economic development activities;
58	58	(3) a nationally recognized expert on
59	59	commercialization of higher education research; and
60	60	(4) a venture capitalist.
61	61	(d) A person may not be a member of the oversight committee
62	62	if the person or the person's spouse:
63	63	(1) is employed by or participates in the management
64	64	of a business entity or other organization receiving money from the
65	65	authority;
66	66	(2) owns or controls, directly or indirectly, more
67	67	than a five percent interest in a business entity or other
68	68	organization receiving money from the authority; or
69	69	(3) uses or receives a substantial amount of tangible
70	70	goods, services, or money from the authority, other than
71	71	reimbursement authorized by this chapter for oversight committee
72	72	membership, attendance, or expenses.
73	73	Sec. 482.052. CHIEF EXECUTIVE OFFICER AND CHIEF COMPLIANCE
74	74	OFFICER. (a) The oversight committee shall hire a chief executive
75	75	officer and a chief compliance officer.
76	76	(b) The chief executive officer shall perform the duties
77	77	required by this chapter or designated by the oversight committee.
78	78	The chief executive officer must have a demonstrated ability to
79	79	lead and develop academic, commercial, and governmental
80	80	partnerships and coalitions.
81	81	(c) The chief compliance officer must have a demonstrated
82	82	ability to lead and provide sound financial and compliance
83	83	management and shall:
84	84	(1) continuously monitor contracts;
85	85	(2) ensure that all award proposals, including
86	86	proposals for a stake, comply with this chapter and rules adopted
87	87	under this chapter before the proposals are submitted to the
88	88	oversight committee for approval;
89	89	(3) establish procedures to document that the
90	90	authority, employees of the authority, and the oversight committee
91	91	comply with all laws and rules governing the review process and
92	92	conflicts of interest; and
93	93	(4) attend and observe the meetings of the committee.
94	94	Sec. 482.053. DISCLOSURES. (a) A person appointed to the
95	95	oversight committee shall disclose to the authority each political
96	96	contribution of greater than $1,000 made by the person to a
97	97	candidate for a state or federal office in the five years preceding
98	98	the person's appointment and each year after the person's
99	99	appointment until the person's term expires. The authority
100	100	annually shall post a report of the political contributions made by
101	101	oversight committee members on the authority's publicly accessible
102	102	Internet website and post a link to the report on the oversight
103	103	committee's main Internet web page.
104	104	(b) Each member of the oversight committee shall file a
105	105	verified financial statement with the Texas Ethics Commission that:
106	106	(1) complies with Sections 572.022 through 572.0252 as
107	107	is required of a state officer under those sections;
108	108	(2) is confidential and is not subject to disclosure
109	109	under Chapter 552, including information derived from the financial
110	110	statements; and
111	111	(3) can be provided in the normal course of official
112	112	business by the oversight committee to the state auditor.
113	113	(c) This section does not affect release of information for
114	114	legislative purposes under Section 552.008.
115	115	Sec. 482.054. ETHICS POLICY AND TRAINING. (a) The
116	116	oversight committee shall adopt and enforce an ethics policy that
117	117	provides standards of conduct relating to the management and
118	118	investment of the funds in this chapter. The ethics policy must
119	119	include provisions that address the following issues as applicable
120	120	to the management and investment of the funds and to persons
121	121	responsible for managing and investing the funds:
122	122	(1) general ethical standards;
123	123	(2) conflicts of interest;
124	124	(3) prohibited transactions and interests;
125	125	(4) the acceptance of gifts and entertainment;
126	126	(5) compliance with applicable professional
127	127	standards;
128	128	(6) ethics training; and
129	129	(7) compliance with and enforcement of the ethics
130	130	policy.
131	131	(b) The ethics policy must include provisions applicable
132	132	to:
133	133	(1) members of the oversight committee;
134	134	(2) the chief executive officer and chief compliance
135	135	officer;
136	136	(3) employees of the authority; and
137	137	(4) any person who provides services to the authority.
138	138	(c) Not later than the 45th day before the date on which the
139	139	oversight committee intends to adopt a proposed ethics policy or an
140	140	amendment to or revision of an adopted ethics policy, the oversight
141	141	committee shall submit a copy of the proposed policy, amendment, or
142	142	revision to the Texas Ethics Commission and the state auditor for
143	143	review and comments. The oversight committee shall consider any
144	144	comments from the commission or state auditor before adopting the
145	145	proposed policy.
146	146	(d) The provisions of the ethics policy that apply to a
147	147	person who provides services to the committee relating to the
148	148	management or investment of the funds must be based on the Code of
149	149	Ethics and the Standards of Professional Conduct prescribed by the
150	150	Chartered Financial Analysts Institute or other ethics standards
151	151	adopted by another appropriate professionally recognized entity.
152	152	(e) The oversight committee shall ensure that applicable
153	153	provisions of the ethics policy are included in any contract under
154	154	which a person provides services to the committee relating to the
155	155	management and investment of the funds.
156	156	Sec. 482.055. OVERSIGHT COMMITTEE OFFICERS. (a) The
157	157	oversight committee shall elect a presiding officer and assistant
158	158	presiding officer from among its members every two years. The
159	159	oversight committee may elect additional officers from among its
160	160	members.
161	161	(b) The presiding officer and assistant presiding officer
162	162	may not serve in the position for more than one consecutive term.
163	163	(c) The oversight committee shall:
164	164	(1) establish and approve duties and responsibilities
165	165	for officers of the committee; and
166	166	(2) develop and implement policies that distinguish
167	167	the responsibilities of the oversight committee and the committee's
168	168	officers from the responsibilities of the chief executive officer
169	169	and the employees of the authority.
170	170	Sec. 482.056. MINUTES. (a) The oversight committee shall
171	171	keep minutes of each meeting at which applications or funding are
172	172	evaluated. The minutes must:
173	173	(1) include the name of each applicant recommended to
174	174	the committee for funding; and
175	175	(2) indicate the vote of each member of the oversight
176	176	committee, including any recusal by a member and the member's
177	177	reason for recusal, with regard to each application reviewed.
178	178	(b) The oversight committee shall retain a copy of the
179	179	minutes of each meeting to which this section applies for at least
180	180	three years.
181	181	Sec. 482.057. SUNSET PROVISION. The Texas Quality Research
182	182	Leadership Authority is subject to Chapter 325, Government Code
183	183	(Texas Sunset Act). Unless continued in existence as provided by
184	184	that chapter, the authority is abolished September 1, 2023.
185	185	SUBCHAPTER C. FUND FOR TEXAS QUALITY RESEARCH LEADERSHIP AUTHORITY
186	186	Sec. 482.101. TEXAS QUALITY RESEARCH LEADERSHIP AUTHORITY.
187	187	(a) The fund for the Texas Quality Research Leadership Authority is
188	188	a dedicated account in the general revenue fund.
189	189	(b) The following amounts shall be deposited in the fund:
190	190	(1) any amounts appropriated by the legislature for
191	191	the fund;
192	192	(2) benefits realized from a project undertaken with
193	193	money from the fund, as provided by a contract entered into under
194	194	Section 482.103;
195	195	(3) gifts, grants, and other donations received for
196	196	the fund; and
197	197	(4) interest earned on the investment of money in the
198	198	fund.
199	199	(c) The fund may be used only for:
200	200	(1) the purposes described in Section 482.001; and
201	201	(2) necessary staff and administration of the fund,
202	202	including administration by the oversight committee.
203	203	(d) The oversight committee may solicit and accept gifts and
204	204	grants for the fund from public and private entities.
205	205	(e) The administration of the authority is to be conducted
206	206	by the oversight committee. The committee may negotiate on behalf
207	207	of the state regarding stakes from the fund. The committee may
208	208	award money appropriated from the fund only with the approval of a
209	209	majority of the oversight committee.
210	210	(f) For purposes of Subsection (e), an award of a stake
211	211	appropriated from the fund is considered disapproved if the
212	212	oversight committee does not approve the proposal to award funding
213	213	before the 31st day after the date of receipt of the proposal. The
214	214	oversight committee may extend the review deadline for an
215	215	additional 14 days through written record before the expiration of
216	216	the initial review period.
217	217	(g) Before making an award under this subchapter, the
218	218	oversight committee shall enter into a contract with the entity to
219	219	receive the award. A contract may specify that:
220	220	(1) if all or any portion of the amount of the award is
221	221	used to build a capital improvement:
222	222	(A) the state retains a lien or other interest in
223	223	the capital improvement in proportion to the percentage of the
224	224	award amount used to pay for the capital improvement; and
225	225	(B) the recipient of the award shall, if the
226	226	capital improvement is sold:
227	227	(i) repay to the state the award used to pay
228	228	for the capital improvement, with interest at the rate and
229	229	according to the other terms provided by the contract; and
230	230	(ii) share with the state a proportionate
231	231	amount of any profit realized from the sale; and
232	232	(2) if, as of a date certain provided in the contract,
233	233	the award recipient has not used the award received under this
234	234	subchapter for the purposes for which the award was intended, the
235	235	recipient shall repay that amount and any related interest
236	236	applicable under the contract to the state at the agreed rate and on
237	237	the agreed terms.
238	238	(h) The oversight committee may make awards in the form of
239	239	loans, charge and receive reasonable interest for the loans, take a
240	240	stake in the form of stock or other security in consideration of an
241	241	award, and sell or otherwise trade or exchange the security for the
242	242	benefit of the fund. Interest or proceeds received as a result of a
243	243	transaction authorized by this subsection shall be deposited to the
244	244	corpus of the fund and may be used in the same manner as the corpus
245	245	of the fund.
246	246	(i) The contract between the oversight committee and a
247	247	recipient of an award under this subchapter may set the terms
248	248	relating to an award.
249	249	Sec. 482.102. EXPEDITING INNOVATION AND COMMERCIALIZATION.
250	250	(a) The oversight committee shall establish financial stakes in
251	251	entities from the fund as provided by this subchapter through peer
252	252	review and evaluation processes established by the committee.
253	253	(b) Before the oversight committee may establish a
254	254	financial stake in an entity, the entity shall obtain and provide
255	255	the following information to the committee:
256	256	(1) a federal criminal history background check for
257	257	each principal of the entity;
258	258	(2) a state criminal history background check for each
259	259	principal of the entity;
260	260	(3) a credit check for each principal of the entity;
261	261	(4) a copy of a government-issued form of photographic
262	262	identification for each principal of the entity; and
263	263	(5) information regarding whether the entity or a
264	264	principal of the entity has ever been subject to a sanction imposed
265	265	by the Securities and Exchange Commission for a violation of
266	266	applicable federal law.
267	267	(c) For purposes of Subsection (b), "principal" means:
268	268	(1) an officer of an entity; or
269	269	(2) a person who has at least a 10 percent ownership
270	270	interest in an entity.
271	271	Sec. 482.103. GUARANTEE OF COMMERCIALIZATION OR
272	272	MANUFACTURING IN TEXAS. An entity receiving money from the fund
273	273	under this subchapter must guarantee by contract that a substantial
274	274	percentage of any new or expanded commercialization or
275	275	manufacturing resulting from the award will be established in this
276	276	state.
277	277	Sec. 482.104. ALLOCATION OF PROCEEDS. (a) The contract
278	278	between the oversight committee and a recipient of an award under
279	279	this subchapter shall provide for the distribution of royalties,
280	280	revenue, or other financial benefits realized from the
281	281	commercialization of intellectual or real property developed from
282	282	any award from the fund. To the extent authorized by law and not in
283	283	conflict with another agreement, the contract shall appropriately
284	284	allocate by assignment, licensing, or other means the royalties,
285	285	revenue, or other financial benefits among identifiable
286	286	collaborating parties and in a specified percentage to this state
287	287	for deposit in the fund.
288	288	(b) The contract under Subsection (a) shall also specify
289	289	other matters considered necessary by the oversight committee.
290	290	Sec. 482.105. COMMERCIALIZATION ACTIVITIES; USE OF MONEY
291	291	FOR INCENTIVES. An amount determined by the oversight committee
292	292	allocated from the fund for use as provided by this subchapter shall
293	293	be reserved for incentives for private or nonprofit entities to
294	294	collaborate with research institutions in this state or private
295	295	institutions of higher education in this state on emerging
296	296	technology projects with a demonstrable economic benefit to this
297	297	state.
298	298	Sec. 482.106. PRIORITY FOR FUNDING. In allocating money
299	299	from the fund under this subchapter, priority shall be given to
300	300	proposals that:
301	301	(1) involve emerging scientific or technology fields
302	302	that have a reasonable probability of enhancing this state's
303	303	national and global economic competitiveness;
304	304	(2) may result in a medical or scientific breakthrough
305	305	or a breakthrough in the area of clean energy;
306	306	(3) are collaborative between any combination of
307	307	private or nonprofit entities and public or private agencies or
308	308	institutions in this state;
309	309	(4) are matched with other available funds, including
310	310	funds from the private or nonprofit entity, research institution,
311	311	or private institution of higher education collaborating on the
312	312	project; or
313	313	(5) have a demonstrable economic development benefit
314	314	to this state.
315	315	Sec. 482.107. TEXAS TARGETED TECHNOLOGY CLUSTERS. (a) A
316	316	Texas targeted technology cluster industry participant is eligible
317	317	for a stake if the activity to be funded:
318	318	(1) will stimulate long-term sustained growth and
319	319	result in the creation of high-quality jobs in Texas, immediately
320	320	or over the longer period; or
321	321	(2) has the potential to result in a scientific or
322	322	manufacturing breakthrough.
323	323	(b) A Texas targeted technology cluster industry includes
324	324	industries related to:
325	325	(1) advanced technologies and manufacturing;
326	326	(2) aerospace and defense;
327	327	(3) biotechnology and life sciences;
328	328	(4) information, computer technology, and
329	329	semiconductors;
330	330	(5) petroleum refining and chemical processes;
331	331	(6) energy; or
332	332	(7) manufactured energy, nanotechnology, and
333	333	microelectromechanical systems.
334	334	Sec. 482.108. AUTHORIZED EXPENSES. (a) An entity
335	335	receiving money from the fund under this subchapter may use the
336	336	money to expedite commercialization that will lead to an increase
337	337	in high-quality jobs in this state and shall use the money in
338	338	accordance with a contract between the entity and the oversight
339	339	committee.
340	340	(b) Authorized expenses under this section include salaries
341	341	and benefits, travel, consumable supplies, other operating
342	342	expenses, contracted research and development, capital equipment,
343	343	construction or renovation of state or private facilities, and
344	344	workforce training.
345	345	SUBCHAPTER D. REPORTING AND ACCOUNTABILITY
346	346	Sec. 482.151. ANNUAL REPORT. (a) Not later than January 31
347	347	of each year, the oversight committee shall submit to the governor,
348	348	the lieutenant governor, the speaker of the house of
349	349	representatives, and the standing committee of each house of the
350	350	legislature with primary jurisdiction over economic development
351	351	matters a report that includes the following information regarding
352	352	awards, including commercialization stakes, made under the fund
353	353	during each preceding state fiscal year:
354	354	(1) the total number and amount of awards, including
355	355	stakes made;
356	356	(2) the aggregate total of private sector investment,
357	357	federal government funding, and contributions from other sources
358	358	obtained in connection with awards, including stakes;
359	359	(3) the name of each award recipient and the amount of
360	360	the stake or other award; and
361	361	(4) a brief description of the stake that the
362	362	oversight committee, on behalf of the state, may take in award
363	363	recipients receiving stakes.
364	364	(b) The annual report must also contain:
365	365	(1) the total number of jobs created by each award,
366	366	including each stake receiving funding;
367	367	(2) an analysis of the number of jobs created by each
368	368	award, including each stake receiving funding;
369	369	(3) an estimate of additional sales, property, and
370	370	related taxes paid by the recipients of the state's stakes; and
371	371	(4) a brief description regarding:
372	372	(A) the methodology used to determine the
373	373	information provided under Subdivisions (1) and (2), which may be
374	374	developed in consultation with the office of the governor;
375	375	(B) the intended outcomes of projects in which
376	376	the state has a stake; and
377	377	(C) the actual outcomes of all projects funded in
378	378	this chapter, including any financial impact on the state resulting
379	379	from a liquidity event involving a business entity whose project
380	380	was funded under this chapter.
381	381	Sec. 482.152. VALUATION OF INVESTMENTS. (a) To the maximum
382	382	extent practicable, the oversight committee shall annually perform
383	383	a valuation of the stakes taken by the oversight committee in
384	384	recipients receiving awards under this chapter.
385	385	(b) The valuation must be:
386	386	(1) based on a methodology that:
387	387	(A) may be developed in consultation with the
388	388	office of the governor; and
389	389	(B) is consistent with generally accepted
390	390	accounting principles; and
391	391	(2) included with the annual report under this
392	392	subchapter.
393	393	Sec. 482.153. CONFIDENTIALITY. (a) Except as provided by
394	394	Subsection (b), information collected by the oversight committee or
395	395	the committee's designees concerning the identity, background,
396	396	finance, marketing plans, trade secrets, or other commercially or
397	397	academically sensitive information of an entity being considered
398	398	for, receiving, or having received an award from the fund is
399	399	confidential unless the entity consents to disclosure of the
400	400	information.
401	401	(b) The following information collected by the oversight
402	402	committee or the committee's designees under this chapter is public
403	403	information and may be disclosed under Chapter 552:
404	404	(1) the name and address of an entity receiving or
405	405	having received an award from the fund;
406	406	(2) the amount of any stake received by an award
407	407	recipient;
408	408	(3) a brief description of the project that is funded
409	409	under this chapter;
410	410	(4) if applicable, a brief description of the stake
411	411	that the oversight committee, on behalf of the state, has taken in
412	412	an entity that has received an award from the fund; and
413	413	(5) any other information designated by the committee
414	414	with the consent of the entity receiving or having received an award
415	415	from the fund, as applicable.
416	416	SECTION 2. The heading to Chapter 490, Government Code, is
417	417	amended to read as follows:
418	418	CHAPTER 490. PROVISIONS RELATING TO FORMER TEXAS [FUNDING FOR]
419	419	EMERGING TECHNOLOGY FUND
420	420	SECTION 3. Sections 490.001(2) and (4), Government Code,
421	421	are amended to read as follows:
422	422	(2) "Fund" means the former Texas emerging technology
423	423	fund.
424	424	(4) "Award" means:
425	425	(A) for purposes of former Subchapter D, an
426	426	investment in the form of equity or a convertible note;
427	427	(B) for purposes of former Subchapter E, an
428	428	investment in the form of a debt instrument;
429	429	(C) for purposes of former Subchapter F, a grant;
430	430	or
431	431	(D) other forms of contribution or investment as
432	432	recommended by the committee and approved by the governor,
433	433	lieutenant governor, and speaker of the house of representatives
434	434	before amendment of this chapter by the 84th Legislature, Regular
435	435	Session, 2015.
436	436	SECTION 4. The heading to Section 490.005, Government Code,
437	437	is amended to read as follows:
438	438	Sec. 490.005. REPORT ON AWARDS FROM FORMER FUND [ANNUAL
439	439	REPORT].
440	440	SECTION 5. Section 490.005, Government Code, is amended by
441	441	amending Subsections (a) and (b) and adding Subsection (d) to read
442	442	as follows:
443	443	(a) Not later than January 31, 2016 [of each year], the
444	444	governor shall submit to the lieutenant governor, the speaker of
445	445	the house of representatives, and the standing committee of each
446	446	house of the legislature with primary jurisdiction over economic
447	447	development matters and post on the office of the governor's
448	448	Internet website a report that includes for each preceding state
449	449	fiscal year the following information regarding awards made under
450	450	the fund [during each preceding state fiscal year]:
451	451	(1) the total number and amount of awards made;
452	452	(2) the number and amount of awards made under former
453	453	Subchapters D, E, and F;
454	454	(3) the aggregate total of private sector investment,
455	455	federal government funding, and contributions from other sources
456	456	obtained in connection with awards made under each of the
457	457	subchapters listed in Subdivision (2);
458	458	(4) the name of each award recipient and the amount of
459	459	the award made to the recipient; and
460	460	(5) a brief description of the equity position that
461	461	the governor, on behalf of the state, has taken [may take] in
462	462	companies that received [receiving] awards and the names of the
463	463	companies in which the state has taken an equity position.
464	464	(b) The [annual] report must also contain:
465	465	(1) the total number of jobs actually created by each
466	466	project that received an award from the fund [receiving funding
467	467	under this chapter];
468	468	(2) an analysis of the number of jobs actually created
469	469	by each project that received an award from the fund [receiving
470	470	funding under this chapter]; and
471	471	(3) a brief description regarding:
472	472	(A) the methodology used to determine the
473	473	information provided under Subdivisions (1) and (2), which may be
474	474	developed in consultation with the comptroller's office;
475	475	(B) the intended outcomes of projects funded
476	476	under former Subchapter D [during each preceding state fiscal
477	477	year]; and
478	478	(C) the actual outcomes of all projects funded
479	479	under former Subchapter D [during each preceding state fiscal
480	480	year], including any financial impact on the state resulting from a
481	481	liquidity event involving a company whose project was funded under
482	482	that subchapter.
483	483	(d) This section expires September 1, 2017.
484	484	SECTION 6. Section 490.006, Government Code, is amended to
485	485	read as follows:
486	486	Sec. 490.006. VALUATION OF INVESTMENTS; [INCLUSION IN]
487	487	ANNUAL REPORT. (a) To the maximum extent practicable, the office
488	488	of the governor shall [annually] perform a valuation of the equity
489	489	positions taken by the governor, on behalf of the state, in
490	490	companies that received [receiving] awards under the fund and of
491	491	other investments made by the governor, on behalf of the state, in
492	492	connection with an award under the fund. The valuation must[:
493	493	[(1)] be based on a methodology that:
494	494	(1) [(A)] may be developed in consultation with the
495	495	comptroller's office; and
496	496	(2) [(B)] is consistent with generally accepted
497	497	accounting principles[; and
498	498	[(2) be included with the annual report required under
499	499	Section 490.005].
500	500	(b) This section expires September 1, 2017.
501	501	SECTION 7. The heading to Subchapter B, Chapter 490,
502	502	Government Code, is amended to read as follows:
503	503	SUBCHAPTER B. MISCELLANEOUS PROVISIONS [TEXAS EMERGING TECHNOLOGY
504	504	ADVISORY COMMITTEE]
505	505	SECTION 8. Section 490.057, Government Code, is amended to
506	506	read as follows:
507	507	Sec. 490.057. CONFIDENTIALITY. (a) Except as provided by
508	508	Subsection (b), information collected by the governor's office, the
509	509	former Texas Emerging Technology Advisory Committee [committee],
510	510	or the committee's advisory panels concerning the identity,
511	511	background, finance, marketing plans, trade secrets, or other
512	512	commercially or academically sensitive information of an
513	513	individual or entity that was [being] considered for or [,
514	514	receiving, or having] received an award from the fund is
515	515	confidential unless the individual or entity consents to disclosure
516	516	of the information.
517	517	(b) The following information collected by the governor's
518	518	office, the former Texas Emerging Technology Advisory Committee
519	519	[committee], or the committee's advisory panels under this chapter
520	520	is public information and may be disclosed under Chapter 552:
521	521	(1) the name and address of an individual or entity
522	522	that [receiving or having] received an award from the fund;
523	523	(2) the amount of funding received by an award
524	524	recipient;
525	525	(3) a brief description of the project [that is]
526	526	funded under this chapter;
527	527	(4) if applicable, a brief description of the equity
528	528	position that the governor, on behalf of the state, has taken in an
529	529	entity that [has] received an award from the fund; and
530	530	(5) any other information designated by the committee
531	531	with the consent of:
532	532	(A) the individual or entity that [receiving or
533	533	having] received an award from the fund[, as applicable];
534	534	(B) the governor;
535	535	(C) the lieutenant governor; and
536	536	(D) the speaker of the house of representatives.
537	537	SECTION 9. Section 50D.013(a), Agriculture Code, is amended
538	538	to read as follows:
539	539	(a) The policy council shall:
540	540	(1) provide a vision for unifying this state's
541	541	agricultural, energy, and research strengths in a successful launch
542	542	of a cellulosic biofuel and bioenergy industry;
543	543	(2) foster development of cellulosic-based and
544	544	bio-based fuels and build on the former Texas emerging technology
545	545	fund's investments in leading-edge energy research and efforts to
546	546	commercialize the production of bioenergy;
547	547	(3) pursue the creation of a next-generation biofuels
548	548	energy research program at a university in this state;
549	549	(4) work to procure federal and other funding to aid
550	550	this state in becoming a bioenergy leader;
551	551	(5) study the feasibility and economic development
552	552	effect of a blending requirement for biodiesel or cellulosic fuels;
553	553	(6) pursue the development and use of thermochemical
554	554	process technologies to produce alternative chemical feedstocks;
555	555	(7) study the feasibility and economic development of
556	556	the requirements for pipeline-quality, renewable natural gas; and
557	557	(8) perform other advisory duties as requested by the
558	558	commissioner regarding the responsible development of bioenergy
559	559	resources in this state.
560	560	SECTION 10. Section 203.021(e), Labor Code, is amended to
561	561	read as follows:
562	562	(e) Money in the compensation fund may not be transferred to
563	563	the[:
564	564	[(1)] Texas Enterprise Fund created under Section
565	565	481.078, Government Code[; or
566	566	[(2) Texas emerging technology fund established under
567	567	Section 490.101, Government Code].
568	568	SECTION 11. The following laws are repealed:
569	569	(1) Sections 490.001(1), (3), and (5), Government
570	570	Code;
571	571	(2) Sections 490.002 and 490.003, Government Code;
572	572	(3) Sections 490.051, 490.052, 490.0521, 490.053,
573	573	490.054, 490.055, and 490.056, Government Code; and
574	574	(4) Subchapters C, D, E, F, and G, Chapter 490,
575	575	Government Code.
576	576	SECTION 12. (a) On September 1, 2015, the Texas emerging
577	577	technology fund is abolished and the balance of the fund is
578	578	transferred to the general revenue fund and may be used in
579	579	accordance with legislative appropriation, except as provided by
580	580	Subsections (c) and (d) of this section.
581	581	(b) The abolition by this Act of the Texas emerging
582	582	technology fund and the repeal of provisions of Chapter 490,
583	583	Government Code, relating to that fund do not affect the validity of
584	584	an agreement between the governor and an award recipient or a person
585	585	to be awarded money that is entered into under Chapter 490 before
586	586	September 1, 2015.
587	587	(c) Money that was deposited in the Texas emerging
588	588	technology fund as a gift, grant, or donation under Chapter 490,
589	589	Government Code, and that is encumbered by the specific terms of the
590	590	gift, grant, or donation may be spent only in accordance with the
591	591	terms of the gift, grant, or donation.
592	592	(d) Money from the Texas emerging technology fund that is
593	593	encumbered because the money is awarded or otherwise obligated by
594	594	agreement before September 1, 2015, but under the terms of the award
595	595	or agreement will not be distributed until a later date shall be
596	596	distributed in accordance with the terms of the award or agreement.
597	597	If the governor determines that the money will not be distributed in
598	598	accordance with the terms of the award or agreement, the governor
599	599	shall certify that fact to the comptroller. On that certification,
600	600	the comptroller shall make that money available in the general
601	601	revenue fund to be used in accordance with legislative
602	602	appropriation.
603	603	(e) On or after the effective date of this Act, the
604	604	following payments or other amounts shall be sent to the
605	605	comptroller for deposit to the general revenue fund:
606	606	(1) any royalties, revenues, and other financial
607	607	benefits realized from a project undertaken with money from the
608	608	Texas emerging technology fund, as provided by a contract entered
609	609	into under Section 490.103 or 490.302, Government Code;
610	610	(2) interest earned on the investment of money in the
611	611	Texas emerging technology fund;
612	612	(3) any interest or proceeds received as a result of a
613	613	transaction authorized by Section 490.101, Government Code; and
614	614	(4) any fund money returned by an entity that fails to
615	615	perform an action guaranteed by a contract entered into under
616	616	Section 490.154 or 490.203, Government Code.
617	617	SECTION 13. A regional center of innovation and
618	618	commercialization established under Section 490.152, Government
619	619	Code, is abolished on the effective date of this Act. Each center
620	620	shall transfer to the office of the governor a copy of any meeting
621	621	minutes required to be retained under Section 490.1521, Government
622	622	Code, as that section existed immediately before that section's
623	623	repeal by this Act, and the office shall retain the minutes for the
624	624	period prescribed by that section.
625	625	SECTION 14. On September 1, 2015, the Texas Emerging
626	626	Technology Advisory Committee established under Subchapter B,
627	627	Chapter 490, Government Code, is abolished.
628	628	SECTION 15. If a conflict exists between this Act and
629	629	another Act of the 84th Legislature, Regular Session, 2015, that
630	630	relates to the Texas emerging technology fund, this Act controls
631	631	without regard to the relative dates of enactment.
632	632	SECTION 16. This Act takes effect September 1, 2015.